New home construction on the rise

ZIONSVILLE, Ind. (WISH) - There's good news on the new home construction front. Nationwide, construction of new houses rose in May by the largest amount in three months.

But is the good news translating into an increase in construction jobs? It undoubtedly is on the national level. But in Indiana, it may take a little more time.

There are signs of new construction in Zionsville. Several new homes are going up this spring in the Eagle's Nest neighborhood.

Nationally, the U.S. Commerce Department said construction of new homes and apartments jumped more than 17% last month. That was better than some economists had expected.

"Everybody wants to see in this economy some positive things happening," said Alan Goldsticker, president of Ryland Homes' Indianapolis Division. "Because everybody wants to move forward in a positive direction."

Builders are hopeful the downturn in housing in Indiana has seen its low point for this recession. They think a number of factors have recently spurred more interest in home building.

Goldsticker said the housing start numbers have not turned around in Central Indiana quite yet. But he thinks low interest rates and other incentives will make a difference soon.

"There's an $8,000 tax credit for anybody who hasn't been in a new home recently or who is a new buyer; that's driving a lot of people, that's a great thing to take advantage of. And the price of homes right now is well under what the market was a year ago, two years ago; so people who have the ability and the confidence, they're taking advantage of those prices."

Goldsticker said another incentive for people to buy homes is the promise builders like Ryland are making to cover mortgage payments for a period of time if a buyer loses his job.

He said he looks forward to being able to provide more construction jobs again, once things start turning around in new home construction in Indiana.